Dubai’s Abraaj said to owe $20m to staff

The liquidator of troubled Dubai investment firm Abraaj is reportedly exploring ways to make up to $20m of payments owed to staff.

Bloomberg reports that around 90 employees, including back-office staff, secretaries and receptionists, are concerned that they will not receive their end of service gratuity payments because of the firm’s current financial difficulties.

A source confirmed the amount owed could be as much as $20m.

The company’s founder Arif Naqvi is facing a criminal charge for issuing a cheque without sufficient funds.

The bounced cheque was used as partial security for loans worth around $300m taken by Abraaj from Hamid Jafar, founder of Sharjah’s Crescent Group, a source told the Financial Times.

A lawyer close to the case told Reuters on Thursday that a Sharjah court adjourned its judgement in the case until July 5 having issued arrest warrants earlier this month against Naqvi and fellow executive Muhammad Rafique Lakhani.

A Sharjah court has adjourned until July 5 a judgment against the founder of private equity firm Abraaj and another executive for issuing a cheque without sufficient funds, a lawyer close to the case told Reuters on Thursday.

The current UAE gratuity system pays 21 days of salary for each year of service, up to five years, when the employee leaves their job or retires.

After five years of service this payment increases to 30 days of salary for each year of service.